The economics of love

Next Tuesday is Valentine’s Day and if you want to join the norm then be prepared to spend a few bucks.

According to one survey, the average Canadian plans to spend $164 on their loved one this year.

Some might say love and economics don’t mix, but the act of giving is a science of give-and-take, according to UBCO assistant professor Ross Hickey.

“An economist would likely say that — why are people in relationships? Gains from trade. You co-habitat a residence if you’re married. You give each other gifts. You receive gifts,” Hickey said.

Some might see it as an investment or a way of cutting your loses.

“Do I really want to make an investment in a gift for a spouse or partner that I’m not really sure I want to be around?” asked Hickey.

Off course, you always have the option to boycott Valentine’s Day, but, as professor Hickey explains, it’s always good to have a back up plan.

“If you really want to boycott Valentine’s Day, the best strategy is, you have a gift in the closet — the receipt is still there. You boycott Valentine’s Day until you receive a gift. If you don’t receive a gift, return the gift you have in the closet.”